28th ΙΕΝΕ National Conference “Energy & Development 2024”
OTE Academy, 6-7 November 2024
Conference Overview and Conclusions, Athens, November 2024
On November 6 and 7, 2024, the annual National Conference “Energy and Development 2024”, organized by the Institute of Energy for SE Europe (IENE), was held at the OTE Academy in Athens. The Conference aimed to highlight the obstacles involved in the energy transition, especially in an environment of energy crisis and two ongoing wars in Europe and the Middle East, as well as the need to find solutions based on proven technologies, which will be cost competitive.
The Conference, which this year closed 28 years of continuous organization (started in 1996 by Costis Stambolis, long before the foundation of IENE), has been established as one of Greece’s main events for energy policy and business, with the participation of leading representatives of its political and economic life, Greek and foreign energy experts and prominent personalities from the global energy scene who contribute to a meaningful dialogue, promoting a fruitful discussion on what is happening in the vital energy sector.
The delegates were welcomed, on behalf of IENE, by its Chairman and Executive Director, who, among others, referred to the importance of energy, as part of a broader economic, social and environmental millieu, focused on the issue of energy security and ensuring uninterrupted, abundant and affordable energy, which has returned to the forefront of energy policy, and pointed out that Europe, and even more Greece, are in a particularly difficult position, since their energy dependence has soared to 63% and 80% respectively.
This year, the Conference can be assessed as successful having attracted more than 75 distinguished speakers and moderators from Greece and abroad, who presented the dynamics and perspectives of the energy sector at national and global level and highlighted its adaptation possibilities to the new global conditions in the shadow of the war in Ukraine and the Hamas-Israel conflict in the Middle East.
The energy transition was at the epicenter of the discussion, with substantial and often intense criticism of its main axes, such as the huge funding that must be secured by 2050, with an intermediate target of 2035, in order to achieve the goals, the attraction of investors and the appropriate energy mix, avoiding the dysfunctions of the European energy market and the target model, the issue of electricity prices and the high volatility that is observed.
Particularly important was the opening statement by the Prime Minister’s Special Advisor on Energy, Mr. Nikos Tsafos. Mr. Tsafos pointed out that our country presents high wholesale prices before the changes that occurred from 2015 onwards and which are often cited as causes for high prices, such as, among others, the implementation of the delignitization policy, the operation of the energy exchange,(ENEX) through the introduction of the Target Model and the restructuring of the Public Power Corporation. In fact, he underlined that the solution to the problem is the revision, at a European level, of the Target Model, in combination with the more massive penetration of RES, the addition of flexibility to the system and the new electricity interconnections with the markets of SE Europe.
There was also participation and representation of all the major companies and organizations in the country's energy sector, that is, the main market players, who provided a comprehensive picture of the current energy status and thoroughly analyzed both the processes that are being carried out and planned as well as the challenges that appear in the energy sector.
At the Conference, all key parameters related to energy, the environment and the economy were highlighted and presented in detail. At the same time, the issues of energy infrastructure and the strategic role of natural gas and LNG in the global and regional energy supply were examined, as well as the problems in the electricity and natural gas markets in SE Europe.
In addition, the physical presence and online participation of a large number of invited speakers from France, the UK, Cyprus, Azerbaijan, Bulgaria and Israel, among others, helped to understand current developments at global, European and regional level.
Global Energy Trends
One of the highlights of the IENE Conference was, once again, the presentation of the latest World Energy Outlook (WEO) 2024, published by the International Energy Agency (IEA) last October. The WEO 2024 was presented by the analyst Mr. Oskaras Alsauskas, who is part of in the IEA modeling team.
The main conclusions of this IEA major study can be summarized as follows:
- More efficient, cleaner energy systems can reduce energy security risks.
- CO2 emissions are expected to peak by 2025, but after that point, CO2 emissions will not decline significantly unless governments take more measures to boost their actions.
- Since Trump’s election, the IEA has already revised its oil and gas market scenarios upwards, assuming that policies for fossil fuels will be friendlier.
- The friendlier policies that Donald Trump is expected to implement for fossil fuels do not mean that much will change in the US, since drilling for shale gas was already underway under Biden presidency, but the new administration is likely to be even friendlier. In fact, under Biden presidency, the new LNG exporting terminals in the United States have been successfully constructed and are expected to be put into operation shortly.
- In the LNG market, no major surprises are expected since it is clear that Europe is currently a major customer of the US LNG industry, a status that the new US president will hardly want to change. In other words, no policies are expected to be implemented that would jeopardize the significant market share of the US natural gas in the European market.
- Especially for natural gas, no dramatic changes are expected in terms of price. The fact that new production capacity will be added to the market in the immediate future from the US, Qatar and Australia is expected to push prices down, without the election of Trump changing the data.
Electricity
In the European Union, there is a great need to redesign the electricity markets and solve the main problems that create distortions. At the moment, the European Commission has adopted a package of measures in the form of directives, which each member state must adapt to its legislation by January 2025. Measures on bilateral contracts, the creation of capacity markets, risk facilitation obligations for investors, consumer protection and a greater share of their participation in the market. The problem is that the European directives increase the regulatory framework and the functioning of the market even more, is based on a complex regulatory model and not on competitive procedures.
The European electricity system has recently shown to be dysfunctional, while the grid is not being used to its full potential. The development of international interconnections and the mapping of the advantages and energy specificities of each European country could help in the development of a more integrated single European system and in the reduction of the RES stochasticity, in the optimization of the system operation and in its flexibility.
Dr. Vasilis Gountis, Director of Market Management at the Independent Power Transmission Operator (IPTO), underlined that IPTO facilitates the green transition of the country and promotes conditions for a new energy reality that will ensure the protection of the environment as well as its energy security. He also focused on the necessity of creating new grids which are necessary for the transition of electricity production.
Professor Pandelis Biskas, of the Department of Electrical and Computer Engineering at Aristotle University in Thessaloniki, raised the issue of Small Modular Nuclear Reactors (SMRs) and how, under certain conditions, they could be used in Greece in order to provide much needed base load electricity as higher RES penetration to the electricity grid is anticipated in the years ahead. The modular nature of SMRs, their relatively small installed capacity and the considerable opportunities they offer for local added value in their supply chain make them a viable proposition for a country like Greece, he noted.
Prof. Biskas analyzed the pros and cons of this technology, while developing four scenarios for the possible addition of such units in Greece. As he said, in this way, Greece could export 2 TWh annually and concluded that such a technology would have a significant positive impact on our country, since it would lead to a reduction in energy prices for the final consumer.
From his perspective, Mr. Alexandros Papageorgiou, CEO of the Hellenic Energy Exchange (HEnEx), argued that Greece has always been a more expensive wholesale electricity market and that the Target Model is not responsible for higher energy prices. He also said that before 2021, when the “Target Model” was adopted, the gap with wholesale electricity prices in Germany was at 70%, while now is below 30%. He argued that Greece is wrongly considered an electricity stock market, since only 5% of power volumes are traded in the day-ahead market, to conclude by saying that the retail price of electricity is wrongly linked to wholesale fluctuations. “The Target Model was not created to give signals to the retail market”, he pointed out.
Mr. Andreas Petropouleas, Energy Management Director at Elpedison, then took the floor, claiming that Greece is the 18th most expensive electricity market in the EU, while the cost of production is at €0.22/MWh and in Germany at €0.40/MWh. He gave as an example a typical electricity bill for a family of 4 members to show that the Greek consumer pays far lower prices for energy, but ends up thinking that he/she pays excessive costs. “A typical family of 4 members in the country pays €120-€140 per month in telecommunications fees but no one complains”, he added. He stressed that for every €10/MWh increase in the supply price, the consumer is charged only €3.
Moreover, Mr. Antonis Kontoleon, President of the Hellenic Union of Industrial Consumers of Energy (UNICEN), stressed that “the main distortion in the Greek electricity market is the interconnection of retail and wholesale prices”. In this way, as he underlined, the producer “hedges” against household electricity tariffs by transferring the risk to the consumer; thus, increasing prices. He added that the tax imposed last August on natural gas increased the variable cost of energy, while he stressed that RES and interconnections are not going to lead to lower prices in the near future, only when they manage to determine the marginal system price. Furthermore, he expressed the view that it is inappropriate to argue that high prices in Greece are not a problem for energy-intensive industries and mentioned that high costs are a barrier for energy-intensive industries.
Natural Gas
Natural gas remains a mainstream fuel for energy transition, while all estimates show a rise in natural gas demand in the coming years, despite the fact that natural gas prices have doubled compared to previous years. At the same time, natural gas exploration activities will increase globally, while after 2027 we will see a sharp rise in the development of new infrastructure in Europe and worldwide. It is no coincidence that orders for new LNG ships are increasing.
Despite the fact that there is high volatility in natural gas prices in Europe, mainly due to the crisis and uncertainty of the Russian-Ukrainian war and due to the increase in LNG imports and the parallel decrease in the supply of cheap Russian natural gas from pipelines, prices are estimated to remain stable in the short to medium term. In particular, from April 2025 we may also see a decrease in natural gas prices. This will depend on the heating needs of the building sector and the climatic conditions that will prevail in the coming winter. On the other hand, it is important that LNG increases competitiveness due to its flexibility and this also leads to price convergence at a global level.
In Greece, the commercial operation of the Alexandroupolis FSRU from October 1, 2024 further enhances the possibilities for greater security and supply of natural gas to the north. The FSRU in Alexandroupolis will reach its full capacity in a few months, while the natural gas is directed exclusively to Bulgaria and later further north to the wider region. It is particularly interesting that 25% of the capacity of the FSRU in Alexandroupolis in its full operation will come from the US.
In particular, Mr. Kostis Sifnaios, Vice President and CEO of Gastrade, argued that there is geostrategic and commercial value in the gas markets of SE Europe, since demand is expected to exceed 8-10 billion cubic meters after the end of the war in Ukraine and therefore, the penetration of natural gas in the region will create new opportunities.
Furthermore, Mr. Sotiris Bravos, Chief Commercial Officer at DESFA, focused on the fact that the market is increasingly switching to LNG, under the threat of a complete interruption of gas supplies from Russia, while he stressed that the shares of Russian gas at the Sidirokastro entry point decreased in October 2024 to 50%, from 65% in last September, with the corresponding percentage for the first 10 months of the year being at 60%.
Mr. Nikos Satras, Head of the Natural Gas Division at Motor Oil, underlined the need for the country to acquire a second LNG terminal in the South, as the ratio with the facilities in Northern Greece is 1 to 4, which means that in the event of any turbulence, our energy security will be undermined. Also, Mr. George Satlas, Co-Chief Executive Officer of ICGB in Sofia, Bulgaria, stressed that infrastructure should be ready when we need it and argued that there is a serious deficit of an effective regulatory framework at EU level that affects investment decisions.
The need to develop the Vertical Corridor, with investments in SE Europe, was also highlighted, regardless of the results of the market tests. Cheap Russian natural gas and the lack of specific measures, policies and planning by the EU are hindering investment efforts to further enhance the capacity of the Vertical Corridor infrastructure. However, infrastructure from the south to the north and vice versa is necessary for security of gas supply, while when the need arises, the EU should be ready to cope with the demand.
At the same time, Mr. George Polychroniou, Executive Director of Strategy and Business Development at DEPA Commerical, argued that until 2025 natural gas prices will remain as they are now and he expects them to fall from 2026. He stressed, however, that the forecasts are affected by the developments at the time and highlighted the imminent interruption of gas supplies through Ukraine as a factor that will probably affect the estimates for the pricing of the fuel.
In addition, Dr. Katja Yafimava, Senior Research Fellow at the Oxford Institute for Energy Studies, said that she does not expect reductions in natural gas prices in Europe, while adding that she does not see the possibility of any diversification of gas supplies in the near future. Furthermore, Mr. Alexandros Lagakos, CEO at Molgas Greece, argued that he foresees a slight decline of gas prices after the second half of the winter due to a possible differentiation of gas supply and demand, i.e. the fundamental data of the market. He stressed, however, that the big question mark is whether there will be a change in domestic gas demand depending on the prevailing weather conditions, while he underlined that LNG is interlinked with flexibility. Mr. Max Vauthier, Managing Director at LNG Value Ltd, in Paris stressed that gas prices will depend on the severity of the upcoming winter.
Hydrocarbons
Another conclusion from the presentations and discussions held during this year’s Conference is the necessity of accelerating exploration work and seismic surveys in order to identify potential significant hydrocarbon targets in the Greek onshore and offshore area, and it was pointed out that any potential discovery, mainly of natural gas, would give the country a valuable economic boost for the next 30-40 years.
Dr. Aristofanis Stefatos, CEO of the Hellenic Hydrocarbon and Energy Management Company (HEREMA), initially referred to the issue of hydrocarbons and said that in recent years the exploration activities have mainly focused on underwater areas that are remote from mainland Greece, are characterized by relatively great depths and have never been explored before.
The exploration activities concern potential, as he emphasized, deposits, adding that from the data collected to date, our country has a number of potential targets that are worth checking through exploratory drillings so as to confirm or reject the possibility that they hide trapped, significant volumes of natural gas.
“Given that all our current estimates for natural gas demand support that we should expect its increase over the next 10 years and the projections for 2050 essentially do not support a significant decrease in gas demand, with some minor exceptions (the declines are not significant), we expect natural gas to play and continue to play the role of a transitional fuel”, he said, adding that “Therefore, the potential domestic production of hydrocarbons (in our case, natural gas) is of high importance for two reasons. For our energy security and for the economic viability of the energy transition at national level”.
Dr. Stefatos also referred to oil, saying that in the event that several deposits are discovered, which, as he emphasized, cannot be ruled out as a possibility, their importance will be less critical in terms of the country’s energy security, in the long term, but he argued that we should not ignore that it will strengthen the national economy, since it will replace the quantities of oil that we import for the production of petrochemical products from the country’s refineries and petrochemical industry. “In this way, we will improve the import-export balance of our country”, he said.
Furthermore, Dr. Stefatos argued that potential domestic hydrocarbon production will supply us with hydrocarbons of a low or lower carbon footprint, compared to those we will import and this is because, on the one hand, the characteristics of the deposits that we expect to find contain dry natural gas, which has a much smaller carbon footprint and, on the other hand, they will not need to travel long distances since they will not be imported from other markets.
“Therefore, there will be a small improvement at this level too. We can say with certainty that in the event of a successful discovery, the potential production of hydrocarbons in Greece is expected to act as a catalytic and stabilizing factor for the energy transition, while the economic benefits are anticipated to contribute beyond the energy transition to strengthening the capabilities of the national economy to deal with the cost of the consequences of climate change. It is a factor that in the past had not been taken into account”, he concluded.
According to Dr. Stefatos, the indications available so far support the hypothesis that the quantities of hydrocarbons under assessment exceed the national demand in Greece, while he also pointed out the fact that any discovery of them will strengthen the country’s impact at a regional level, especially at this extremely critical period.
Moreover, Ms. Tereza Fokianou, Partner and Chairwoman of IENE’s Upstream Committee, began her address by presenting the existing and planned drilling activities of the international oil and gas companies, as well as their practices in terms of the selection and management of the blocks they undertake. An important issue is the dual role of hydrocarbons. On the one hand, the production of fossil fuels provides energy security, covering the gaps that arise in the energy mix due to the intermittent operation of RES. On the other hand, the profits of fossil fuels constitute an ideal source of financing for the very high investments required in the context of the green transition. Therefore, hydrocarbons are set to continue to play a critical role in the coming decades, she concluded.
Dr. Amit Mor, CEO of ECO Energy, joined the Conference online from Israel, explained the impact of the current conflict, as well as the broader geopolitical unrest, on fossil fuel production. The constant threats of air attacks on the drilling platforms located in the Israeli maritime area have signaled the interruption or reduction of production, resulting in a decrease in exports to neighboring countries. Egypt was particularly affected by this development, facing a period of intense energy insecurity. Taking this into account, the introduction of RES into the energy mixes of countries acts as a counterweight to hydrocarbons, with different energy sources ensuring a smooth supply to consumers.
The discussion concluded with the presentation of Dr. Konstantinos Nikolaou, Independent Energy Consultant and a founding Partner of IENE, whose experience in the fossil fuel sector allowed him to outline the gray reality for the development of Greek deposits. At the start of the economic crisis, the Greek leadership had realized the significance of hydrocarbons, attempting to gradually begin their exploitation. However, the distortions of the Greek state, such as political reluctance, have led to the abortion of almost all exploration activities for fossil fuels that had been launched. In fact, even the international oil and gas companies abandoned the blocks that had been assigned to them, something possibly unprecedented in international terms. Equally disastrous is the ambiguous, if not hostile, attitude of successive Greek governments towards interested parties while responding positively to demands by minority groups. Statements by Greek officials, even at the highest levels, regarding their opposition to the exploration and exploitation of Greece’s mineral wealth led investors to quickly retreat in order not to waste their funds and time in vain.
As noted, the production of fossil fuels in Greece could largely change its current role in the Eastern Mediterranean energy system. Although Greece will hardly become a “second Saudi Arabia”, as the quantities of hydrocarbons remain unclear, domestic production and export capacity would certainly improve its trade balance. On the contrary, the current situation seems to be trapped in the same trap that caught Europeans in 2022. The dependence on fuel imports from a large supplier, such as Russia in the past or the US in the present, hides the risk of exploiting this weakness. Although Washington remains an ally of, Brussels in general and Greece in particular, one should remember that each country’s decisions are based on what it considers to be its own interest, especially when the interlocutor is now an experienced businessman who boasts of his/her negotiating skills.
RES, Grids & Energy Efficiency
In the Conference, the current and future challenges facing the Greek and European electricity grids due to the introduction of RES into the system were analyzed in detail, making the need for major investments imperative. The opportunities that exist through energy interconnections, with Greece being interconnected to new markets, such as Germany and Egypt for RES, were also presented.
The most ambitious project being discussed in the field of international electricity interconnections is the Green Aegean, with a cost that will range from €8-€12 billion. It is an electricity interconnection that will be built in Western Greece through the Adriatic Sea and from there to Southern Germany. According to initial estimates of the ongoing pre-feasibility study undertaken by Grant Thorton on behalf of IPTO, this project is viable under certain conditions and assumptions. The final results, as stated, among others, by the Vice President of Grant Thornton and IENE Partner, Mr. Nikos Frydas, are expected to be announced around mid-December by IPTO, where the “numbers” of the project in terms of its sustainability will be accurately reflected.
In addition, the mega project Gregy of the Copelouzos Group for the electricity interconnection between Greece and Egypt is progressing at a rapid pace, with the parallel development of green RES units that will supply the project with cheap energy. As stated at the Conference by the Chief Executive Officer of the RES Business Unit of the Copelouzos Group, Mr. John Karydas, the necessary studies for the project are expected to be commissioned in 2024, while if everything goes smoothly and the final investment decision is made in 2025, then the project is expected to be completed by 2031. In fact, there was great interest in the relevant public tender for the assignment of the studies and over 20 proposals were presented. The project promoter’s goal is to co-finance up to 50% of the cost of the studies from the European Fund “Connecting Europe Facility”.
By 2031, when the electricity interconnection is expected to be operational, the aim is to have completed the construction of 50% of the 9.5 GW of RES projects that will supply the cable with cheap green energy. Of these, 75% will consist of wind farms, while the rest will be photovoltaic parks, with the implementation being carried out through a special purpose vehicle (SPV) to be established by the Copelouzos Group. Egypt offers significant advantages for RES projects, such as low development costs due to flatter terrain, favorable licensing conditions and high wind potential. The energy that will be produced will be continuous and reliable and will have characteristics that will approach baseload.
Professor Stavros Papathanasiou of the Department of Electrical and Computer Engineering and Electrical Power at the National Technical University of Athens, underlined the need to move forward to new schemes to support the RES market in order to deal with curtailments and negative prices. Prof. Papathanasiou emphasized from the beginning of his keynote address that the high penetration of RES in the country brings new challenges, which require critical changes. “Without strengthening the grids and implementing solutions for congestion management, the electricity system will reach saturation by 2025”, he noted.
“The curtailments affect projects, as when zero or negative market prices occur, there is a loss of revenue. In conditions of 100% RES penetration, 20% of the time there may be zero prices, with implications for investments”, he added. “To address this, it is necessary to move to non-production-based support schemes, such as capability-based or financial CFDs, which are linked to the production capacity of the project and not to actual production. With these new schemes, support is decoupled from curtailments or market prices, while at the same time introducing a framework for the efficient operation of projects”.
As Professor Papathanasiou explained, in order to avoid saturation and congestion conditions, the competent authorities are planning to expand the grids and invest in energy storage. “The new storage framework can reduce curtailments and stabilize the market, limiting speculation and offering greater security to investors.”
In particular, in order to avoid overloading, the Hellenic Electricity Distribution Network Operator (HEDNO) is preparing a program to upgrade the distribution network with the aim of doubling the capacity to receive new resources. “It is crucial to avoid the phenomenon of overbooking, that is, the reckless provision of access without appropriate planning, which will lead to congestion”, he said.
“The high penetration of RES will bring further production curtailments, which are now inevitable,” commented Dr. Papathanasiou and added that the NECP plans to develop storage, which reduces curtailments by 2% to 80% depending on the conditions. “Congestion management also requires restrictions for each RES unit, so that it accepts restrictions during periods of congestion, thus incorporating the “flexible connections” approach. In Greece, the framework for flexible connections was established by Law 4951/2022, article 10, which provides restrictions for RES units without storage and for clean storage units”.
Furthermore, Dr. Athanasios Dagoumas, President of the Regulatory Authority for Energy, Waste and Water (RAAEY), referred to the energy efficiency market for buildings as well as the expansion of digital services to energy consumers. Dr. Dagoumas presented the new digital tools developed by the Regulator and put into trial operation by RAAEY, which are related to the “Energy Balance”, the so-called “The Duck Curve” (as the international term is) and the “estimated energy surplus”. As he said, the tools are available to all players of the Greek energy sector, to researchers and analysts who wish to have a more thorough analysis and knowledge of its operation .
In his address, Mr. Yiannis Yiarentis, CEO of the Renewable Energy Sources Operator & Guarantees of Origin (DAPEEP), talked about the role of the operator in expanding the RES market with new capacity expansions. As he said, DAPEEP has diversified on a very healthy basis, as over the last five years key initiatives have been undertaken, while the overall management of the Operator has radically changed everyone’s approach to RES. Mr. Yiarentis reiterated how important the total restoration of financial management was, as the uncertainty from the payment delays that had become a regime in the past, and was troubling tens of thousands of producers was finally fixed.
He pointed out, in fact, that the solution came after the rationalization of DAPEEP’s finances, the reduction of bureaucracy and the simplification of procedures, which resulted in the overdue debts being zeroed, and therefore, producers being able to plan their investments based on predictable revenue streams. Finally, he made special reference to the robustness of the Special Account for RES, which he described as fundamental for ensuring the energy transition. According to Mr. Yiarentis, there is no other way to achieve the goals that have been set, unless the financial robustness in the energy sector is maintained.
Furthermore, Dr. Stefatos from HEREMA, referred to offshore wind farms, which, as he said, constitute the next big step and challenge for our country in the effort to complete its energy mix and achieve the balancing of the contribution of RES throughout the day and not just during the hours of sunshine. In this sense, the development of offshore wind farms is a priority. He emphasized that over the last three years an important effort has been made to identify suitable locations for offshore wind farms, with rules and clear definitions, as the project constitutes a national strategic priority for two reasons.
On the one hand, it is absolutely necessary to ensure the medium-term effectiveness of RES, i.e. their economic viability towards the green transition, and on the other hand, because it constitutes a developmental first step, with total investments estimated between €7.5 and €11 billion by 2032.
To achieve the energy transition, the most important part in the chain is the distribution networks. More than €67 billion are needed every year in European networks, which with the right regulatory framework can be reduced to €55 billion. The increase in electricity consumption remains a major challenge to balance supply, but also to avoid problems with security of supply in the EU.
New Energy Technologies
One of the most interesting sessions concerned the prospects for the development of new energy technologies, such as the further digitilization of the energy sector and the impact of the entry of Artificial Intelligence (AI), the introduction of green fuels, the prospects for implementing CCUS technologies, with sectors such as aviation and shipping not yet having advanced to the adoption stage. On the other hand, Greece can play a key role in new energy technologies through the export of hydrogen and through the activation of the largely untapped national potential for biomethane.
The main conclusion from the discussion on the contribution of Artificial Intelligence to the energy transition was that the countries should effectively control its developments, with a series of targeted regulatory interventions, before it becomes uncontrollable.
In addition, the latest achievements in the field of AI were presented, in particular a system that utilizes algorithms and AI to manage the impacts of climate change. This can be done through the timely detection and response to unusual weather phenomena or emergency events, such as fires and floods that plague not only our country but the entire planet.
Furthermore, it was emphasized that the rapid development of Artificial Intelligence is already affecting and transforming individual sectors of the economy, while estimates show that in the coming years this impact will intensify further. According to Oxford Economics, Artificial Intelligence is likely to increase the GDP of the Eurozone by 1.4% in the next 15 years, thanks to the enhancement of labor productivity, as well as the encouragement of investments and spending on research and development related to AI applications.
Also, CCUS technology is an ideal solution for the most polluting industries, which cannot eradicate carbon emissions but wish to contribute to decarbonization efforts. This is a sector in which Greece is already a pioneer, with the cement industry having undertaken many initiatives, but also with the first major CCUS project in the Eastern Mediterranean, which is located in Prinos.
In fact, Dr. Stefatos referred to the development of a carbon dioxide transport network to storage facilities outside Greece and in particular in Egypt and Romania. As he said, HEREMA has proposed a major project for the transport and storage of carbon dioxide, which will ensure, at a national level, additional capture and storage capacity that will be required by the industries in Greece and in neighboring countries.
“Only in this way, we will ensure that our country will have properly exploited its leadership in this field in order to maximize the benefits. This will soon be possible because the Greek shipowners are leading the way in building tankers for the transport of liquefied carbon dioxide”, he stressed. “There is already a plan for central collection and distribution of liquefied carbon dioxide over longer distances, while the neighboring countries, such as Egypt and Romania, are positive about the possibility of cooperation for the provision of additional storage capacities that will be needed”, he added.
He referred to the speed with which Greece is advancing the relevant investments and noted that the Greek companies have secured funds for the capture and storage of 3.5 million tons of carbon dioxide, being the second country in Europe behind Germany which has secured funds for 4.5 million tons per year.
“Greece demonstrated quick reflexes when in 2021 included the financing of the conversion of the depleted Prinos oil deposits in Kavala into permanent carbon dioxide storage facilities, securing €150 million through the Recovery and Resilience Fund to make this project a reality. We estimate that this crucial project will enable us to store 3 million tons of carbon dioxide every year. Because there are industries in Greece that do not have alternative solutions to reduce carbon dioxide emissions and carbon storage is essential to maintain their activity in the country”, he said.
As he mentioned, in these technologies, such as CCUS, the great progress has been made by countries with a tradition in the sector, such as Denmark, Norway and the United Kingdom, which have hydrocarbon production, while he described Greece as the “Denmark of the Mediterranean” in terms of the speed with which it is promoting the CCUS project.
Conclusions
The energy sector is fast changing in Europe and Greece, while the transition to the new energy environment is taking place following Russia’s invasion of Ukraine and more recently the Israel-Hamas conflict in the Middle East. It is the transition towards less polluting and smart energy with widespread use of clean technologies and the parallel entry of digital technology. New ideas and innovative technologies are a decisive driver and guide, while digital technology spreads in all activities and everyday life. Energy is becoming a complex sector and is characterized by high investments and critical economic, environmental, social and geopolitical parameters, innovation, research and market reforms, with the need of an adaptable and appropriate regulatory framework.
Greece, with the mainland, the islands and the sea that surrounds it, offers great energy challenges, which must be addressed with prudence and technical maturity, with appropriate policy and planning for development, maximizing social and economic benefits. The country’s high dependence on energy imports (hydrocarbons and electricity) has significant negative effects on the economy and energy security, so the main goals of strategic planning should be the reduction of energy dependence and the advancement of a competitive energy sector, taking into account environmental requirements.
Energy security, the improvement of energy efficiency, the wide utilization of RES and the operation of a competitive market emerge as key policy axes. A major transformation is taking place in the electricity sector with the entry of RES. Rapidly evolving technologies in RES are achieving extremely low prices, with a highly dispersed generation, which are transforming the grid and the market and are forcing electricity companies to change their business model. The electricity grid is also being transformed with innovative technologies in order to integrate the increasing penetration of RES with high efficiency, reliability and with new services to consumers, while the market is reforming and looking for tools to meet the new challenges for its operation. Electricity is evolving as a main energy carrier with expanding applications replacing fossil fuels, as it spreads everywhere, such as transport, heating/cooling, etc., also being a driver of growth.
In conclusion, the 28th “Energy & Development 2024” Conference, with wide participation and detailed documentation of current developments and technological solutions offered, sent a “message” of optimism. An optimism, which is based on the possibilities that admittedly exist today for the further development and diversification of Greece’s energy sector. Developments that will come through investments and substantial reforms aimed at rationalizing the functioning and optimization of the energy market. Something that can be achieved in cooperation with the relevant Greek and European bodies and companies. The latter appear ready to respond and participate in the restructuring of the regulatory and operational framework that is being attempted in this period. IENE was, is and will be a facilitator in this effort.